Oracle Corp. on Monday promoted Clay Magouyrk and Mike Sicilia to become co-chief executive officers, signaling the company\u2019s focus on its rapidly expanding cloud computing business.<\/p>\n
The 39-year-old Magouyrk was one of Oracle Cloud Infrastructure\u2019s first employees after a stint at Amazon.com Inc. and rapidly climbed the ranks at Oracle. Sicilia, 54, was most recently president of Oracle Industries, where his experience included oversight of software applications for specific business sectors and the acquisition of health records business Cerner Corp.<\/p>\n
The elevations underscore how Oracle is betting its future on cloud infrastructure, the business of building data centers that companies such as OpenAI and Meta Platforms Inc. then use to deliver artificial-intelligence services to their customers. It has booked massive deals with such clients that will make the cloud division its largest unit by revenue in the coming years. It is spending heavily to fulfill these commitments, and has seen its annual cash flow go negative for the first time since 1990.<\/p>\n
Safra Catz, 63, who has led the company since 2014, will step back to become executive vice chair of the board. She expressed skepticism toward the cloud infrastructure business in OCI\u2019s early days due to high costs of operating data centers and lower margins, Bloomberg has reported. <\/p>\n
While tech companies rarely split responsibilities at the CEO level, Oracle has experience with this structure. Catz was promoted to co-CEO in 2014, alongside Mark Hurd. After Hurd died in 2019, Chairman Larry Ellison said he didn\u2019t plan to name a second CEO to work with Catz.<\/p>\n
Though Magouyrk and Sicilia\u2019s titles are the same, Magouyrk will be paid more. He will receive stock package worth $250 million, while Sicilia will receive one worth $100 million, the company said in a regulatory filing. <\/p>\n
\u201cClay\u2019s years of experience leading Oracle\u2019s large, fast-growing Cloud Infrastructure business has demonstrated his readiness for a CEO role.\u201d Ellison said in a statement. \u201cThey are both proven leaders, and I am looking forward to spending the coming years working side-by-side with them.\u201d <\/p>\n
Oracle reaffirmed the financial guidance it provided earlier this month. It also said that Catz will no longer serve as the company\u2019s principal financial officer. That will now be Douglas Kehring. Oracle\u2019s stock was little changed after markets opened in New York. It has been up more than 85% this year, far outpacing the Standard & Poor\u2019s 500 Index.<\/p>\n
Separately Monday, the White House announced that Oracle will be key to a deal taking shape to sell the popular Chinese-owned app to a consortium of American investors. TikTok was a crucial early customer of Oracle\u2019s cloud.<\/p>\n
\u201cWe believe that investors are already familiar with both Mr. Magouryk and Mr. Sicilia and that their promotions solidify the importance of the Cloud and Industry businesses as the growth levers for the company,\u201d wrote Kirk Materne, an analyst at Evercore ISI.<\/p>\n
Ford writes for Bloomberg.<\/p>\n","protected":false},"excerpt":{"rendered":"Oracle Corp. on Monday promoted Clay Magouyrk and Mike Sicilia to become co-chief executive officers, signaling the company\u2019s…\n","protected":false},"author":2,"featured_media":174411,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[104046,28,104048,5311,104045,104047,3426,191,100339,12857,104044,25141,57917,83701,104049,74,2394],"class_list":["post-174410","post","type-post","status-publish","format-standard","has-post-thumbnail","category-computing","tag-39-year-old-magouyrk","tag-business","tag-clay-magouyrk","tag-cloud-computing","tag-cloud-division","tag-co-ceo","tag-company","tag-computing","tag-datum-center","tag-experience","tag-mike-sicilia","tag-oracle","tag-oracle-cloud-infrastructure","tag-safra-catz","tag-stock-package","tag-technology","tag-year"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/174410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=174410"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/174410\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/174411"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=174410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=174410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=174410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}